The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 34 | 36.5x | 20.8x | Bottom tier | |
Growth | 11 | -1.6% | 6.1% | Bottom tier | |
Quality | 61 | 4.2% | 6.6% | Around median | |
Safety | 61 | 1.8x | 0.7x | Around median | |
Capital Return | 17 | — | 2.02% | Bottom tier | |
Momentum | 48 | 31.2% | 4.1% | Around median | |
Sentiment | 94 | 17 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Enphase Energy, Inc. (ENPH) is a global leader in home energy technology and the world's leading supplier of microinverter systems based on semiconductors, which convert solar energy at the level of each individual panel. The company generates the majority of its revenue from selling smart microinverters from the IQ8 and IQ9 families, home and commercial storage batteries (IQ Batteries), bi-directional electric vehicle charging solutions, and advanced energy management software. The company targets the residential and commercial energy sectors with its products in key markets including the United States, Europe, and Australia.
During the first quarter of 2026, Enphase Energy recorded revenue of $282.9 million, which included $34.5 million in Safe Harbor revenue. On the profitability front, the company recorded a GAAP net loss of $7.4 million (loss per share of $0.06), while non-GAAP net income settled at approximately $62.3 million (earnings per share of $0.47). GAAP gross margin was 35.5%, impacted by discounts on the sale of production tax credits (PTCs) and reciprocal tariffs, while non-GAAP gross margin stabilized at 43.9%. During the quarter, the company shipped 1.41 million microinverters and 103.1 megawatt-hours of batteries, with a geographical revenue split of 83% for the United States and 17% for international markets.
Analyst consensus rates Enphase Energy stock as a Hold, with their estimated average price target at $45.65, with expectations ranging between an optimistic high of $85 and a conservative low of $21.7. Given the stock's 52-week trading range between $25.78 and $73.74, the stock's valuation reflects a delicate balance between current operational challenges in the solar sector and the promising prospects of new products.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The IQ SST (Smart Solid-State Transformer) product represents a strategic step by Enphase Energy to enter the AI data center market, which requires massive power exceeding 1 MW per rack. This product relies on a distributed architecture integrating 342 dedicated power units built on custom silicon chips and Gallium Nitride (GaN) technology to provide continuous 800V DC power. Through this design, the company aims to eliminate the need for traditional backup batteries, improve conversion efficiency, and significantly reduce costs. The company plans to present a full system demonstration model later in 2026, followed by customer trials in 2027 and the start of broad commercial shipments in 2028.
The Propel program, developed in cooperation with distribution and financing partners, is achieving great success in boosting sales of Enphase Energy's IQ batteries. This program features an extremely high battery attachment rate of up to 84%, which is mainly due to the focus of the program's pilot phase in California, which enforces laws that incentivize energy storage. The company currently records a contract rate of 200 new contracts per week across more than 200 partner installation companies in four US states. Management expects to complete the pilot period and expand the program on a broad national scale starting in July 2026, which will contribute to increasing battery sales volume in the second half of the year.
Automated analysis for informational purposes only — not investment advice.
Enphase Energy expects second-quarter 2026 revenue to range between $280 million and $310 million, including approximately $85 million in Safe Harbor revenue. The company also aims to ship between 100 and 110 megawatt-hours of IQ batteries during the same period to meet growing demand. On the margin front, management expects to achieve a non-GAAP gross margin ranging between 44% and 47%, which includes a negative impact of approximately 3 percentage points resulting from reciprocal tariffs. Due to inventory accumulation in the first quarter, the company decided to ship approximately $25 million less than actual demand to correct inventory levels at distributors.
The European market is witnessing a notable recovery for Enphase Energy, with revenue increasing by 36% in the first quarter of 2026 compared to the fourth quarter of 2025 due to channel restocking. In April 2026, the company recorded a strong jump in battery activations of 75% in the Netherlands, 27% in Germany, and 20% in France compared to the monthly average of the first quarter. This momentum is driven by the continuous rise in electricity prices and the shift toward self-consumption of energy, especially with the gradual phasing out of net metering policies in the Netherlands by the end of 2026. The company is preparing to strengthen its competitiveness in Europe by reducing battery prices by 10% in May 2026 and launching the fifth generation of batteries soon.
Enphase Energy ended the first quarter of 2026 with a strong financial position including $930.6 million in cash, cash equivalents, and marketable securities, compared to approximately $1.51 billion at the end of the fourth quarter of 2025. This decrease is mainly due to the company settling the full value of the convertible bonds due on March 1, 2026, worth $632.5 million using its available cash liquidity without resorting to issuing new shares. Additionally, the company successfully generated operating cash flows of $102.9 million and free cash flows of $83 million during the first quarter. It also applied for customs duty refunds of $50 million through the US government portal and expects to receive them within 90 to 120 days.